Can I Get Convenience Store Insurance If I Sell Alcohol?
By Sophia Ramirez
January 19, 2025
Convenience stores that sell alcohol face unique risks and challenges of their own, including potential liabilities tied to serving alcoholic beverages. Having proper insurance, such as liquor liability coverage, is crucial to protect against the financial repercussions of accidents or incidents caused by intoxicated customers, ensuring the business remains secure.
Insurance for convenience stores that sell alcohol provides coverage for property damage, legal costs, and potential liabilities caused by alcohol-related incidents. With liquor liability insurance, businesses that serve alcohol can minimize these risks, maintain compliance with regulations, and ensure safety for their operations and assets against unforeseen financial burdens.
Insurance Requirements for Alcohol Sales
Selling alcohol comes with specific insurance requirements, including liquor liability coverage to protect from accidents concerning intoxicated customers. Here is how you can comply with local regulations:
Liquor Liability Insurance: Required if a customer gets intoxicated and causes a car accident, holding your store liable by dram shop laws.
General Liability Insurance: Needed if a drunk customer slips in your store, claims for injury and asks for medical expenses.
Workers' Compensation Insurance: Required if an intoxicated customer assaults an employee, leading to injuries and medical treatment expenses.
Product Liability Insurance: Required if a customer gets sick from an expired beer sold at your store and sues for damages.
Commercial Property Insurance: Needed if a drunken fight in your store results in property damage, including broken shelves or stolen goods.
Business Interruption Insurance: Required if legal action forces your store to shut down temporarily, covering lost income and expenses.
Liquor License Insurance: Needed if your store unknowingly sells alcohol to a minor, leading to fines and a suspended liquor license.
Umbrella Insurance: Required if a drunk driver sues your liquor store after causing a crash and legal costs exceed your coverage.
Types of Coverage Needed
Different types of coverage are essential for convenience stores selling alcohol to safeguard against risks like legal issues, property damage, and employee injuries. Below is a list of coverage options:
Liquor Liability Insurance: Covers legal and financial risks from serving alcohol, including bodily injuries and claims.
General Liability Insurance: Protects against third-party claims for injuries or property damage caused by your store.
Product Liability Insurance: Coverage for claims related to the products you sell, including issues related to serving alcohol.
Commercial Property Insurance: Protects your store’s property, including inventory and equipment, from getting damaged, ensuring security.
Business Interruption Insurance: Covers lost income in case your business is temporarily shut down due to unforeseen events.
Workers' Compensation Insurance: Provides financial support to employees injured on the job, covering medical and wage loss.
Employment Practices Liability Insurance: Protects against employee-related claims such as workplace discrimination or harassment issues.
Cyber Liability Insurance: Covers costs of a data breach, protecting sensitive customer information, including payment data.
Commercial Auto Insurance: Protects company-owned vehicles, including those used for alcohol-related deliveries or transport.
Umbrella Insurance: Provides extra liability coverage beyond basic insurance policies, protecting your business from large claims.
How Selling Alcohol Affects Premiums
Selling alcohol at a convenience store increases the risk overall profile, leading to higher insurance premiums. The added liability exposure from potential accidents, underage drinking, or alcohol-related incidents can significantly raise the cost of insurance. Liquor liability insurance becomes essential to protect the business from financial losses in these situations.
Insurance premiums are heavily influenced by the added risk of selling alcohol in convenience stores, as insurance companies factor in the potential for lawsuits, claims, and damages - meaning more finances. This may include higher general liability premiums and the need for specialized coverage, like liquor liability and workers’ compensation insurance.
Meeting Local and State Regulations for Alcohol Sales and Insurance
Making sure your store is compliant with local and state regulations for alcohol sales is vital for convenience stores. Regulations often mandate specific licenses, employee training, and safety measures. Adhering to these rules helps protect businesses legally and minimizes the risk of penalties that could impact operations or insurance coverage.
Insurance agents or specialists typically require evidence of store compliance with alcohol-related laws. This adherence impacts the store’s coverage costs and premiums. By meeting the set legal requirements, stores reduce the likelihood of claims and may even qualify for discounts or enhanced coverage options, providing stronger protection for the business.
Get a Free Convenience Store Insurance Quote
Are you ready to protect your business property with the perfect insurance policy with Insure C-Store? For a free quote, provide your name and number and select the type of business property you want. After that, click “Submit” to be directed to a form asking for your business information, insurance coverage details, gas station coverage (if applicable), and contact information.
If you have any more questions or prefer a more personalized touch, don’t hesitate to call us or visit our office anytime.
Sophia Ramirez
Insurance Research Analyst & Writer
Sophia Ramirez is an experienced insurance writer specializing in business coverage. With a deep understanding of industry risks, she provides clear, insightful content to help business owners safeguard their investments.